Google Strikes $4.75 Billion Deal to Acquire Intersect Power
December 22, 2025
In a major move to secure its energy and infrastructure future, Alphabet Inc.'s Google has agreed to acquire Intersect Power, a leading U.S. developer of clean energy and data center projects, for $4.75 billion. The acquisition underscores the intensifying race among hyperscalers to lock in power supply and physical capacity, which are critical constraints for expanding artificial intelligence and cloud services.
The deal, announced this week, will see Google's parent company purchase Intersect Power's entire portfolio of in-development and under-construction assets. This portfolio comprises "several gigawatts" of combined energy generation and data center capacity. Notably, the transaction excludes Intersect's existing operating assets in Texas and its operating and in-development assets in California; these will remain a separate, independent entity. Following the acquisition, Intersect Power will continue to operate as a distinct company under its founder and CEO, Sheldon Kimber, and will partner with Google's technical infrastructure team.
The strategic acquisition grants Google direct control over a significant pipeline of infrastructure. Intersect Power brings a substantial track record, with a portfolio including 2.2 gigawatts of operating solar photovoltaic capacity and 2.4 gigawatt-hours of battery storage already in operation or under construction, primarily across Texas and California. The partnership builds upon an existing relationship formed last year, which included a co-located data center and energy site currently under construction in Haskell County, Texas.
In a statement, Google and Alphabet CEO Sundar Pichai emphasized the strategic rationale: “Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive US innovation and leadership.” Echoing the sentiment on the future of infrastructure, Intersect CEO Sheldon Kimber stated, “Modern infrastructure is the linchpin of American competitiveness in AI. We share Google’s conviction that energy innovation and community investment are the pillars of what must come next.”
The transaction is a clear signal of the evolving data center landscape, where control over energy—particularly clean, reliable, and scalable power—is becoming as strategically vital as the computing hardware itself. For Google, this move not only secures gigawatts of future capacity but also provides a specialized team and development platform to accelerate its ambitious build-out plans across the United States, ensuring its AI and cloud ambitions are not hampered by power scarcity.
Source: datacenterdynamics
